The reason for increasing marginal cost is the diminishing marginal product of labor.

Name: The reason for increasing marginal cost is the diminishing marginal product of labor.
Brand: Quizplus
Rating: 4.7 (28 reviews)

Question

Quizplus · Accepted Answer

As the amount of labor being used increases, there comes a point where each additional unit of labor adds less to the total output than the previous unit of labor. This means the marginal product of labor is diminishing, which leads to an increase in marginal cost.

The Reason for Increasing Marginal Cost Is the Diminishing Marginal